Bruce Rossmeyer’s Pompano
Harley-Davidson has closed, another victim of the failing economy.
The dealership opened in 2002 and was
owned by the late Rossmeyer, who also owned the world’s largest H-D
dealership, in Ormond Beach, Florida. That dealership was more like a
vacation destination that also sold motorcycles.
Bruce Rossmeyer was killed in a motorcycle
collision in Wyoming last July.
Other motorcycle dealers have been affected by the crunch, of course, the lastest American shop being Yamaha of Napa (California), which closed its doors last week. Owner Jeff Monroy said February’s sales were down 85 per cent compared to the previous February. "I kept reducing my costs and laying off people, and it kept getting worse," he told the St. Helena Star . "I just couldn’t pay the bills any more."
Meanwhile, Harley-Davidson share prices surged this week on a rumour of a take-over bid by a large global equity firm, Kohlberg Kravis Roberts & Co. The value of the shares rose a couple of dollars on Tuesday, but the value of the rumour is unknown.
All those HD dealers spent WAAAY to much money on those expensive coffee shops/ clothing boutiques.
Now they can’t pay for them.
Maybe Harley & some dealerships grew too big.
When you’re selling all your inventory you figure you need to build/buy more as demand seems to be growing or you’re not fulfilling all the existing demand. Eventually everybody who wants that product in the current demographic bubble or geographic area has bought one. The “trick” is knowing when to stop growing. It’s easier said than done.
What are these new investors going to do for HD? Diversify the lineup, modernize the v-twin? HD already tried that with Buell, MV and the vrod.
It seems like the canary in the mineshaft. The USA is borrowing over a trillion a year and looking to spend billions more on healthcare.
Yea, and they could stop the sale of MV, and sell Harley to China or India… :grin
Perhaps BRP might be interested. That would certainly increase Rotax sales. They could always spin off the non-Buell assests if they didn’t want to convert to Rotax from the existing engine line!
:p